Saturday, January 17, 2009

Stimulus Provisions Harden Political Party Lines

The good news: The House version of economic stimulus legislation contains over $153 billion in hard dollars for construction projects.

The bad news: Debate over this important legislation is already degenerating along the old political party lines, despite the best efforts of officials and staff of the incoming Obama administration to include something for everyone in the package.

Republicans in the Senate, led by Senate Appropriations Ranking Member Thad Cochran, sent a letter to Senate Appropriations Chairman Daniel Inouye complaining that the Senate should not even take up the bill until it has been vetted by Obama administration OMB staff and OMB can report to the committee on the effects the proposed spending will actually have on the economy. Republicans are miffed that tax reduction is such a small portion of the House package. So the age old beliefs - Democrats that spending stimulates the economy; Republicans that tax relief stimulates the economy - will apparently define the debate over this legislation.

While House Appropriations Chairman David Obey is already talking about the potential need for additional stimulus spending even after the House measure passes, House Appropriations Ranking Member Jerry Lewis pans the measure as giving "little thought to real economic results, job creation or respect for the taxpayer," and Senator Tom Coburn complains that "75% to 80% of [the House measure] won't stimulate anything."

The other principal issue to be debated will be protectionism. Representatives Dan Lipinski and Donald Manzullo are complaining there should be more "buy American" requirements in the legislation, and they are joined by Steelworkers Union President Leo Gerard and Scott Paul, executive director of the Alliance for American Manufacturing. At the same time, President Nancy McLernon of the Organization for International Investment points out that stricter requirements to use American produced materials for all this construction work would likely violate the WTO Agreement on Government Procurement, to which the United States is a signatory.

As of Friday afternoon, the details of the House version of appropriations for construction spending looked like this:

INFRASTRUCTURE CONSTRUCTION DOLLARS (Billions)

Agriculture - Construction
$0.253

Agriculture - Rural Facilities Loans
$0.200

Subtotal Agriculture
$0.453

Airport Improvements
$3.000


Defense Environmental Cleanup
$0.300

Defense Facilities
$4.500

Defense Hospitals
$3.750

Defense Reserves and National Guard Facilities
$0.400

Defense Troop Housing
$1.550

Defense VA Medical
$0.950

Subtotal Defense
$11.450



Federal Buildings - Border Protection Modernization
$0.150

Federal Buildings - Border Protection Construction
$1.000

Federal Buildings - Bureau of Indian Affairs
$0.500

Federal Buildings - Commerce Department Science Research
$0.300

Federal Buildings - Fish and Wildlife
$0.300

Federal Buildings - Forest Service Construction
$0.650

Federal Buildings - GSA Energy Conservation
$6.000

Federal Buildings - Indian Health Service
$0.550

Federal Buildings - NASA Hurricane Repairs
$0.050

Federal Buildings - National Mall
$0.200

Federal Buildings - National Parks
$1.700

Federal Buildings - NSF Construction and Equipment
$0.400

Federal Buildings - NSF University Repair Grants
$0.200

Federal Buildings - Other
$0.700

Federal Buildings - Smithsonian
$0.150

Federal Buildings - U. S. Geological Survey
$0.200

Subtotal Federal Buildings
$13.050



Health - Centers for Disease Control Modernization
$0.462

Health - Community Health Center Construction
$0.500

Health - Community Health Center Modernization
$1.000

Health - NIH Central Campus Modernization
$0.500

Health - NIH University Research Construction and Renovation
$1.500

Health - Public Health Service Headquarters Construction
$0.088

Subtotal Health
$4.050



Highway Federal Aid
$30.000



Local Transit Capital
$6.000

Local Transit Investment
$1.000

Local Transit Rail
$2.000

Subtotal Transit
$9.000



Passenger Rail
$1.100



Power - Bonneville Power Administration
$3.250

Power - Carbon Capture And Sequestration Demonstrations
$2.400

Power - Energy Efficiency and Renewable Energy Grants
$8.400

Power - Home Weatherization Assistance
$6.200

Power - Renewable Energy Loan Guarantees
$8.000

Power - Smart Grid Construction
$4.500

Power - Western Area Power Administration
$3.250

Subtotal Power
$36.000



Public Housing Capital
$5.000

Public Housing Community Block Grants
$1.000

Public Housing Lead Paint Remediation
$0.100

Public Housing Native American
$0.500

Public Housing Neighborhood Stabilization
$4.190

Public Housing Section 8 and Elderly
$2.500

Subtotal Public Housing
$13.290



School Federal Impact Aid
$0.100

School Modernization - College
$6.000

School Modernization - K-12
$14.000

Subtotal Schools
$20.100



Water and Environment - Brownfields Cleanup
$0.100

Water and Environment - Drinking Water Construction
$0.500

Water and Environment- Corps of Engineers Construction
$2.000

Water and Environment - EPA Clean Water Construction
$6.000

Water and Environment - EPA Drinking Water Construction
$2.000

Water and Environment - EPA Leaking Underground Tanks
$0.200

Water and Environment - EPA Superfund
$0.800

Water and Environment - Mexican Boundary Water Projects
$0.224

Subtotal Water and Environment
$11.824


TOTAL CONSTRUCTION
$153.317

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